Sicily by Car, Banca Akros: M&A dossier in the Balkan area and the Iberian region

Takeover bid Exprivia accessions as at 28072023

(Finance) – Nel fourth quarter of 2023 Sicily by Cara company listed on Euronext Growth Milan and among the main operators in Italy in the short-term car rental sector, continued to suffer a certain pressure on both volumes and average daily revenues. The analysts of Banca Akros commented on this after the company’s management participated in the “Appointment at the Columns” investor conference. The broker has a “Buy” recommendation and a target price of 10 euros per share.

It is estimated that i average daily revenues of Sicily by Car have approached 40 euros in fiscal year 2023 (-23% y/y); the outlook for fiscal 2024 is positive in terms of volumes (i.e. number of days sold), while daily prices could ease again by an expected 5% y/y. Analysts estimate that a decrease in average daily revenues of 1 euro will have an impact on margins of approximately 2 million euros.

On the front BUTit emerged that Sicily by Car is evaluating several dossier in the Balkan area (Croatia, Slovenia, Greece) and in Iberian region (Spain and/or Portugal); furthermore, the company does not exclude possible moves in Italy, perhaps to expand the offer/improve the fleet utilization rate.

Still on the M&A front, the available firepower for acquisitions it may vary from 30 to 60 million euros; it should be considered that Sicily by Car had a net cash position of 30.5 million euros at the end of September 2023.

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